Structure Flashcards
Structure
The formal rules and roles that specify how an organization’s work is divided and coordinated. They specify who does what and who reports to whom.
Ex: Like a delegation
1. Simple 2. Functional 3. Divisional 4. Matrix 5. Network
Hierarchy
a system or organization in which people or groups are ranked one above the other according to status or authority.
Centralization
The company relies on one main person that makes all of the significant decisions
Prominent in small businesses
Departmentalization
Divides an organizations structure into different departments who perform tasks specific to their own department
simple structure
Typical of most small businesses that centralizes all the power on the boss or owner. This is good because all the major decisions go through them with streamlined communication. This is bad because there is a heavy burden on the leader and there is little formalization.
Functional structure
One of the most common organizational structures. The organization groups employees by business function allowing specialization and economies of scale in each function. Makes communication across functions harder, “tunnel vision”.
Apple’s Structure
functional structure
divisional structure
Division and coordination of labor. Each division is organized, and expected to run itself, as a complete mini business. Its a business within a business. Promotes competition between divisions and makes coordination harder.
Microsofts structure
Functional structure. It changed from divisional structure in order to promote more coordination between groups.
Matrix structure
Combination of both functional and divisional structure. A double boss way of organizing work. It brings together employees and managers from different departments to work toward accomplishing a goal. Tries to combat lack of cross-functional coordination and lack of economies of scale and cross-divisional communication and agility.
ABB’s Structure
Matrix structure. Not the best move for the company because the decentralization didnt mix well with the culture that was previously established.
principle of unity of command
Unity of command provides that an employee is responsible to only one supervisor, who in turn is responsible to only one supervisor, and so on up the organizational hierarchy; violated by matirix
network structure
an attempt to maximize flexability and adaptability. Major functional units are linked only by contract, no longterm building of an organization, contracts, relationships can change quickly. Pros: very flexible, quickly change to take advantage of new opportunites. Cons: diminished loyalty and culture.